Apple Inc (NASDAQ:AAPL) stock slipped on a day the company unveiled the new iPhone and Apple Watch models.
Analysts at Wedbush called the event, which Apple named “Wonderlust,” a “flex the muscles moment for Cupertino” and reiterated its uy rating and $280 price target. Apple shares fell 1.7% Tuesday to $176.30.
Apple unveiled the standard iPhone 15 starting at $799, the 15 Plus starting at $899, the iPhone 15 Pro at $999, and the iPhone Pro Max at $1,199. The Series 9 Apple Watch will be priced at $399.
“The Apple Watch has transformed to a meaningful product segment for Apple speaking to the monetization of a golden 2+ billion iOS installed base that remains unmatched globally,” Wedbush analysts wrote.
“The iPhone 15 launch comes off the heels as Apple further penetrates its large ecosystem and we also believe ASPs are bumping up towards a roughly $900/$925 with a heavier Pro mix shift for the iPhone 15 setting up for a new ‘mini supercycle’ despite the uncertain macro and China worries.”
Preorders for all four iPhone models start on September 15, with in-store availability on September 22, the same date the watch goes on sale.
These new iPhones feature Dynamic Island, a redesigned notch at the top of the screen that minimizes visual space, a feature initially introduced with the iPhone 14 Pro models last year. Importantly, they’ll also come equipped with a USB-C charging connector.
“All eyes were on the iPhone 15 Pro and Pro Max which continues to be at the center of this success story during this impressive upgrade cycle taking the baton from iPhone 14,” analysts wrote. “In a surprise move for pricing the iPhone 15 Pro will be $999 which is unchanged from last year with NO price increase but the iPhone 15 Pro Max will start at $1,199 (up $100 from the 14 Pro Max) which we view as a smart strategic move with the enhanced technology, A17 chip, and battery technology.”
The firm also believes more users will spring for the more expensive Pro models this cycle.
“We also expect a heavy iPhone Pro mix shift for iPhone 15 in a 75%/25% base model vs. the historical 60%/40% seen over the past few years in a major ASP tailwind for Cook & Co. especially out of China in a very heavy Pro/Max model mix,” analysts wrote.
“We also believe Apple is expecting further iPhone Pro and Pro Max mix shift which is a clear positive for ASPs heading into FY24. We also expect significant promotional activity from the carriers around the iPhone 15 starting in September.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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